HSBC Warns Adobe’s AI Discount Could Erode Profit Margins
ADBE•HSBC flagged Adobe’s decision to offer a steep AI feature discount as a mistake, warning it could dilute profit margins and undermine valuation. The bank kept its neutral stance, citing uncertainty over long-term pricing strategy and potential erosion of Creative Cloud revenue.
1. HSBC Criticizes Adobe’s AI Discount
HSBC publicly labeled Adobe’s move to discount its new AI-powered features as a misstep, suggesting the reduced pricing risks compressing profit margins and weakening overall company valuation. The bank maintained a neutral rating on Adobe shares, emphasizing the need for clearer long-term pricing and margin visibility.
